How to solve the problem¬-excess industry capacity of refractories

According to professional statistics, last year six refractories companies net profit amounted to 368,733,900 yuan, down 28.58%. And has announced a five-quarter net profit fell 20.54% in total. In response to this phenomenon, the

industry stakeholders believe that although China introduced the relevant policies to improve the refractory industry and disorderly development of backward production capacity problems, but excess capacity and insufficient demand in the short term is difficult to resolve the contradiction, refractories industry is still is not optimistic about the state. To solve this problem, refractory industry should develop in the following two direction.

First, improving the industry concentration the past 10 years, although China's refractory industry has achieved good results, has become the world's largest producer, consumer and exporter. But even so, the former world ranked 10 refractories business sales, there is no Chinese enterprises. Many professionals believe that the reason for this phenomenon is that the current production capacity of China's refractory industry has been transformed into a comprehensive surplus from structural surplus, market disorderly competition, low prices; order chaos by industry self-regulation is difficult to reverse. In this regard, Refractories Association drafted a "refractory industry access", was designed from the layout, process equipment, production scale, product quality, energy consumption, environmental protection aspects, utilization, safety and other enterprises to improve Refractories income threshold. This is conducive to improve the disorderly development of the industry.

Second, the increase in receivables, improve profit margins

According to the survey, in 2012 sales revenue of China's refractories business, profits have declined. 2012 slow recovery of global economic, the downstream industry downturn, lack of demand; intensified competition within the industry, resulting in some refractory product sales prices down. Many industry professionals said, because of the refractory industry and downstream enterprises are mainly non-ferrous metals such as steel and building materials industries, today's economic slow recovery, downstream firms are also facing serious overcapacity, insufficient demand phenomenon still persists, This gives the refractory industry has brought great impact, making refractories enterprises excessive competition, prices are low and thereby shrinking profit margins. Therefore, the increase of trade receivables, improve profit margins is particularly important.